Were broke? Get outta here!
Revenue to the state treasury is falling and more people are enrolling in Medicaid, triggering significant demands on the entitlement program. Although the state has federal stimulus money to shore up finances in the 2011 budget, which starts July 1, 2010, the federal money won’t be enough to backfill the budget unless there is a major turnaround in the economy.
Well, that’s what you get when you don’t attract young workers to our state to help pay for the program, that, and we think taxing food is a good way to fund government.
The five major revenue sources to the state are down in the first three months of the current fiscal year that started July 1. Combined, they represent 90 percent of the state’s general fund revenues. The most important – sales tax – was down $33 million or 5.2 percent.
It’s time the state implemented an income tax, got rid of retail taxes and reduced property taxes. We’ll see what solutions are offered;
Bernie Hunhoff, the Democratic minority leader in the House, said his party will have ideas about what to do. “Democrats are here to work with the governor and with the Republicans to get South Dakota out of this,” Hunhoff said. “It’s not one party’s problem; it’s South Dakota’s problem.” The slowdown in state revenues reflects the pain felt on family farms and main street, Hunhoff said. The situation could call for across-the-board cuts. “Unless we really see an immediate rebound in revenues, the hole is getting so deep that everybody is going to have to share in the pain and sacrifice,” he said.
That’s why an income tax makes sense, it makes everyone share that sacrifice fairly. Abdallah wants to touch the sacred cow, better be careful, or King Rounds will cut your fingers off.
Republican Sen. Gene Abdallah said he wants a thorough accounting of how much money is in each of the state’s reserve funds, including some of the more obscure funds, before he’ll be ready to consider more cuts.
I agree it is time to dip into the reserves, that’s what they are there for, a rainy day.
Don’t worry. The fix is in.
They’ll dust off the proposal to raise taxes that was bandied about the last legislature.
No hard decisions or choices for these bums.
No telling De Smet the state won’t fund an airport with no annual movements.
No telling towns losing population & closing schools thy can’t have four-lane roads.
No telling the governor the job is entitled to air force of one or two planes.
Spend, spend, borrow, borrow – voo doo economics live.
Bernie is wrong. This isn’t a dem problem or need the dem’s to fix. Rounds and the republicans in SD have spent us into severe financial problems and now they want everyone to raise taxes so he can spend more. If I was a dem in the legislature the only tax I would vote for is the one placed on jet fuel for Rounds’ jet.
Seems that is the only job of Dems these days, eating shit sandwiches.